Laura A. Suesser
Laura Suesser practices in the areas of commercial real estate, land use and natural resources. She advises clients on the acquisition, development, sale, finance, leasing and operation of projects and the structuring and negotiation of contracts. Laura has represented developers, health care institutions, investor, and financial institutions in property acquisition, disposition, mortgage financing and general business matters.
Net Metering Changes in Utah - A Victory for Renewable Energy in Utah
The following changes to Rocky Mountain Power’s (RMP) Net Metering Tariff went into effect April 1, 2009, based on the Public Service Commission’s (PSC) ruling in February 12, 2009:
- Total System Capacity set at 20% of RMP’s 2007 peak demand (equivalent to 923,000 kW or 923 MW).
- All Renewable Energy Credits (RECs) are owned by the customer, or as otherwise designated by the customer.
- Residential customers will receive kilowatt-hour credits for any excess generation they produce.
- Large commercial and industrial customers with demand charges that generate excess generation will be given a choice between:
- Valuing excess generation at an avoided cost based rate (schedule 37), available as a choice between a blended (yearly average) rate or seasonally differentiated rates,
-- OR -- - Valuing excess generation at an alternative rate calculated by dividing Rocky Mountain Power’s Utah revenue per schedule (applicable to the net metering customer) by the schedule’s corresponding kilowatt-hours usage data from the previous year’s FERC Form No. 1.
- Valuing excess generation at an avoided cost based rate (schedule 37), available as a choice between a blended (yearly average) rate or seasonally differentiated rates,
- Annual Net Metering Report Requirements: The PSC directs RMP to submit an annual net metering report that includes the number of Utah net metering installations, the respective individual capacity of each installation, the total capacity of the Utah customer-generation as of the end of the annualized billing period, and any unforeseen problems or barriers in the tariff, and any other relevant measure showing how close the program is to the designated net metering cap.
- Customer classification: The PSC determined that the following customer classes will be used to implement the aforementioned changes:
- Residential: all residential schedules
- Small Commercial: Schedule No. 23 and Schedule No. 23B – General Service – Demand Time-of-Day – Distribution Voltage
- Large Commercial: Schedules Nos. 6, 6A – General Service – Energy Time-of-Day Option, 6B – General Service – Demand Time-of-Day Option, Schedule 8, and Schedule No. 10 – Irrigation and Soil Drainage Pumping Power Service
- Minimum Bill Fee: The PSC found it reasonable to apply the minimum bill to net metering customers who provide net excess generation.
2009 Utah Legislation Sets Stage for More Renewable Energy in Utah
Legislators recently adopted legislation aimed at helping Utah stay competitive with surrounding states in the fast growing national clean energy movement. Five (5) bills dealing with renewable energy and energy efficiency passed with strong bi-partisan support. Three (3) resolutions, while non-binding, send strong messages to local governments and utilities that the legislature encourages, and wants to remove barriers to, renewable energy and energy efficiency across all sectors. The success of the 2009 legislative session indicate that renewable energy will play critical roles in Utah’s future.
House Bill 430 - Economic Development Incentives for Alternative Energy Projects, is designed to attract new clean energy industries and projects to Utah. The bill allows the Governor’s Office of Economic Development (GOED) to establish energy development zones and offer tax credits to companies and projects located in those zones.
Senate Bill 76 SO3- Energy Amendments, address the barriers to renewable energy transmission by creating a political subdivision of the State tasked with the development of a master plan for renewable energy production and transmission infrastructure. This subdivision will have the ability to apply for and seek out federal grants, as well as bonding authority to pay for transmission lines for renewable energy.
Senate Joint Resolution 1 S02 Renewable Energy System, urges the Utah State Energy Program and municipal governments to collaborate on the development of model renewable energy ordinances to streamline the development process at the local government level.
Senate Joint Resolution 10 - Alternative Training Center, recognizes the need to train the growing clean energy workforce in Utah. The bill supports the establishment of an Alternative Energy Training Center in Beaver County, an area with high concentration of existing, upcoming and potential renewable energy development.
House Joint Resolution 9 - Effective Energy Efficiency and Utility Demand Side Management, recognizes energy efficiency as a priority resource and urges state and local governments and utilities to promote and encourage all available cost-effective energy efficiency and conservation, setting voluntary energy savings goals for Rocky Mountain Power and Questar Gas and expresses support for regulatory mechanisms that remove disincentives to utility energy efficiency and conservation.
Utah PSC Revises Net-Metering Policy Creating New Incentives for Solar and Wind Energy
Renewable energy supporters in Utah are cheering a recent order which will make renewable energy systems such as wind turbines and solar panels more cost effective for consumers.
On February 12, 2009, the Utah Public Service Commission issued an order revising the Rocky Mountain Power net metering policy. In the past customers who own renewable-energy facilities were credited for excess generation based on an avoided-cost calculation, which results in a low financial benefit to the customer. The new net-metering policy provides a "full retail" or dollar-for-dollar credit for every kilowatt-hour of excess power generation, creating a much greater incentive for renewable-energy production by residential, commercial and industrial consumers. In addition, the order declared that renewable energy certificates shall be "deemed owned by the net-metering customer or as otherwise agreed to or designated by the net-metering customer." The PSC order will become effective on April 1, 2009.
Salt Lake County Mayor Peter Corroon and Salt Lake City Mayor Ralph Becker, both supporters of renewable energy and this net-metering policy change, are reportedly investigating ways to promote investment in solar power in the region having jointly received a Solar America grant from the U.S. Department of Energy.
Utah Governor Urged to Withdraw from Western Climate Initiative
On February 13, the Utah Public Utilities and Technology Committee voted to favorably recommend a House Resolution urging Governor Huntsman to withdraw Utah from the Western Climate Initiative. The resolution, 1st Sub. H.R. 3, contains recitals referring to “Utah’s abundant and clean burning coal,” the lack of balance in the Governor’s Blue Ribbon Council on Climate Change, the absence of economic analysis of the costs and benefits associated with carbon reduction mandates, and other concerns regarding the economic impact of a cap and trade mandate. The resolution is among a number of proposed resolutions and bills addressing energy issues, including H.J.R 9, Joint Resolution on Cost-Effective Energy Efficiency and Utility Demand-Side Management, H.J.R. 12, Joint Resolution Supporting Hydrogen Power From Advanced Coal and Carbon Capture and Sequestration Technology, and House Bill 412, Energy Policy Amendments.
Utah Legislation Addresses Definition of Independent Power Production Facility
Last year, we reported on Utah Public Service Commission decisions regarding the need for the Milford Wind Power Project to obtain a certificate of convenience and necessity. Ultimately, the Commission ruled that the Project’s 90-mile transmission line connecting the wind farm to a point of interconnection at the Intermountain Power Project generating station was not part of the power production facility and was therefore not excluded from Commission jurisdiction. Docket No. 08-2490-01, Order on Petition for Rehearing, July 2, 2008. Thus, Milford Wind was required to obtain a certificate of convenience and necessity for the transmission line. In an apparent attempt to avoid that type of result in the future, the Utah Legislature is considering a bill that adds a definition of “generation facility” to the Public Utilities Code, providing that “’Generation facility’ means all electric plant used for the production or generation of electricity, including all electric plant used to interconnect the production or generation plant.” S.B 76. The bill also then uses that term “generation facility” in the definition of “independent power production facility,” and through other definitions, exemption from Commission jurisdiction is provided for such facilities.
Utah and the U.S. Department of Energy See Promise in Algae Research for Biofuel Production
On September 29, 2008, the U.S. Department of Energy announced a $900,000 government grant to Utah State University (USU) and Montana State University for the team's plan to grow species of algae that can thrive in geothermal vents and in the Great Salt Lake. This research is one of six biofuel projects throughout the country funded by the U.S. Department of Energy. The Utah Science Technology and Research (USTAR), a Utah legislative initiative, sees so much promise in this, and other USU biofuel research, that USTAR has awarded the USU Biofuels Program $6 million for five years. USTAR makes highly-selective, strategic investments in research with the potential to benefit Utah’s economy. The goal of biofuel research is to find or develop a renewable fuel that is dependable and economically viable. Algae that consumes carbon dioxide could be used to consume the carbon dioxide released from power plants’ waste gases and the oils produced would be converted into fuel. Using algae in this way requires an algae that can tolerate the high temperature environment of a power plant and therefore the research team is growing an algae in geothermal vents. In addition, the team is hoping to produce biofuels from algae grown in a saltwater environment, such as our oceans and the Great Salt Lake, which would spare tapping more valuable fresh water resources. There is great interest in this research because algae is not subject to the same problems of other biofuels and may very well prove a viable fuel source. Algae doesn’t compete with corn or other crops for good farmland and its production wouldn’t drive up food costs. Algae can produce up to 10,000 gallons of oil per acre. Any technological advances learned by this particular research is likely several years away, but USU plans to produce an algae-biodiesel that is cost-competitive by 2009.
